U.S. Trustee objects to Charter's bankruptcy plan

Fri Apr 24, 2009 8:48am BST
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By Ajay Kamalakaran and Emily Chasan

BANGALORE/NEW YORK (Reuters) - The U.S. Trustee, a Justice Department agency that oversees bankruptcies, objected to documents filed by bankrupt U.S. cable TV operator Charter Communications (CHTRQ.PK: Quote, Profile, Research) explaining its reorganization plan, court documents show.

In a filing with the U.S. Bankruptcy Court for the Southern District of New York on Thursday, the U.S. Trustee said the Charter's disclosure statement is "deficient" and "fails to contain adequate information."

The U.S. Trustee, calling for a change of language in the plan, said Charter did not explain the grounds for releasing its directors, financial advisers, former officers, attorneys, employees and other parties from liability.

Charter, which is controlled by Microsoft (MSFT.O: Quote, Profile, Research) co-founder Paul Allen, filed for bankruptcy protection last month, buckling under the weight $21.7 billion in debt.

"Neither the disclosure statement nor the plan explain why the non-debtor release is warranted or justified," the U.S. Trustee said in the filing.

Charter postponed a hearing on its reorganization plan to May 5 from April 29.

WELLS FARGO OBJECTION

Wells Fargo & Co (WFC.N: Quote, Profile, Research) also objected to the company's reorganization plan, saying Charter's attempt to reinstate $11.8 billion of debt may not be feasible.  Continued...

 
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